Medhi Benbouguerra, CEO of Edenred Bulgaria
"Edenred Bulgaria is part of the world leader in prepaid corporate solutions Edenred. Edenred's Group has over 50 years of history and is presented in 45 countries worldwide. For more than 15 years, Edenred Bulgaria has been facilitating the daily life and improving the well-being of employees in Bulgaria by helping its corporate clients motivate employees and partners through easy-to-use products. The company's portfolio includes food vouchers according to Ordinance No. 7 and Ordinance No. 11 and vouchers and Gift & Award cards. The company's partner network includes over 10 thousand retail outlets and restaurants accepting Edenred's vouchers and cards, increasing their turnover and winning new customers.
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What's new in the food voucher market for 2023?
2023 is vital for the food voucher market. Until the government passes a regular budget, their 1 billion quota is maintained, and the amount of tax-free voucher funds per employee per month remains at 200 leva. Following the adoption of the new budget for 2023, changes to the VAT Act will come into force, fixating this amount at 200 leva as a permanent provision rather than a temporary measure.
Retaining the quota amount and the tax-free value of food vouchers will allow more employers to provide this social benefit to their employees. It will increase their purchasing power in the face of rising inflation and food prices and help their family budgets. The possibility of using food vouchers according to Ordinance Nº7 for cultural activities and tourism is also there. We will also be able to use them for household bills when we conclude contracts with electricity, gas, heating and water suppliers.
What are food vouchers?
Food vouchers are additional social benefits employers provide to their employees to support their purchasing capacity and increase their motivation. They are exempt from tax and national insurance up to 200 leva per month per employee. Food vouchers can be used for food, groceries, non-alcoholic beverages, household bills, cultural activities and tourism. Over 10 thousand outlets across the country accept food vouchers, including restaurants, fast food outlets, shops and supermarkets.
What types of food vouchers are there, and what's the difference between them?
There are two types- the first type is by Regulation No. 7 of the Ministry of Finance. Any employer who meets the legal requirements can take advantage of them as a supplement to their employee's monthly salary. Up to BGN 200 per month, the employer and employee are fully exempt from taxes and social security contributions on the vouchers.
The second type is following the requirements for free meals for employees working in undertakings with a specific nature and organisation of work. In contrast to the first type, there is no limit on the tax-free amount. Still, they can only be provided in establishments with a specific nature and organisation of work, such as night work, 12-hour shifts, certain temperature conditions, and exposure to harmful agents.
What are the benefits for employers and their employees?
Providing food vouchers to supplement the monthly salary motivates employees and increases their purchasing capacity. In addition, it can significantly improve the efficiency of work in the company. Employers can also use them to boost the corporate image and employee confidence.
How do vouchers contribute to the fight against the shadow economy?
A proven effect of food vouchers is to lighten incomes and consumption. Employers who previously gave out additional portions "in envelopes" can use this tool to brighten workers' payments. Traders who accept food vouchers must register for VAT, which also increases tax collection. Coupons support the local economy because they can only be used within the country and do not become savings - people spend them almost immediately as they have a limited validity period.
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"Edenred Bulgaria" is a leading operator of food vouchers, gift vouchers and prepaid cards. For more than 18 years, the company has been improving employee well-being in Bulgaria by helping its customers motivate employees and partners through easy-to-use products. More than 280,000 employees and over 4,000 corporate customers currently use Edenred Bulgaria's services.
Medhi Benbouguerra has been the CEO of Edenred Bulgaria since 2015. Before that, he held the same position at Menew, part of VM Finance Group, which in 2013 formed a joint venture with Edenred, a leader in prepaid enterprise solutions in 45 countries.
